Sea (SE) Q3 2024 earnings summary

Executive summary

• Achieved strong growth and improved profitability across e-commerce, digital financial services, and digital entertainment in Q3 2024, with all segments contributing to a consolidated net income of $153.3M versus a net loss last year.

• Shopee maintained market leadership in Asia and Brazil, achieving positive adjusted EBITDA in both regions and robust user and order growth.

• SeaMoney's loan book expanded over 70% year-on-year, with stable asset quality and a growing user base.

• Garena's Free Fire bookings grew over 30% year-on-year, with daily active users exceeding 100 million and strong engagement.

• Group adjusted EBITDA reached $521.3M, a significant increase from $35.3M in Q3 2023.

Financial highlights

• Total GAAP revenue rose 31% year-on-year to $4.3B in Q3 2024.

• Gross profit increased to $1.9B, up from $1.4B year-over-year.

• Operating income reached $202.4M, reversing a loss of $127.7M in Q3 2023.

• Adjusted EBITDA surged to $521.3M from $35.3M in Q3 2023.

• Net income was $153.3M, compared to a net loss of $144M in Q3 2023.

Outlook and guidance

• Shopee is on track to deliver full-year guidance of mid-20s% year-on-year GMV growth.

• Free Fire bookings expected to grow over 30% year-on-year for full year 2024.

• Shopee expected to remain profitable going forward.

• Continued investment in logistics and technology to support growth and efficiency.

• Management maintains focus on growth and profitability into 2025 amid stable competition.